N.O.D on HOA fees? - Posted by JT from SD

Posted by JohnBoy on February 11, 2001 at 15:39:27:

Home Owners Association Fees

N.O.D on HOA fees? - Posted by JT from SD

Posted by JT from SD on February 11, 2001 at 10:40:26:


I have a situation in CA that requires knowledge and expertise. There is a 4bd,4ba property with a N.O.D. and will be auctioned off due to non-payment of HOA fees.
This HOA fees scenario seems unusual to me, but what do I know? Thats why I come here. What can I do to get my hands on said property?

The property also is in default in property taxes according to a property profile I have, although no N.O.D. has been sent out for it yet. I know it will come to that at some point. (maybe?)

Someone suggested that I can go to the HOA and ask them to sell me the lien so that I can foreclose on it myself. Sounds like a good idea, but what about this property tax default situation?

I once went to an auction and no one showed up but me. Really! Too chicken to make a bid on any property, but I want to bid on this if it gets this far. My preference would obviously be to get it pre-foreclosure.

I contacted the HOA attorneys and I was told that the owners are the only ones that can cure the lien. Maybe they can tell me that, but I feel that all they want is their money and don’t really care about where it comes from.
I would just like to hear the forum give me advice on what to do next.

Again, I want to get this before it goes to auction. How do I do that?
If it does make it to auction, Can someone explain what I need to bring (moneywise) and what might my future obligations might be, if any, to own the house free and clear?
My intention is to sell it retail once I own it.

Thanks in advance!!!
JT from SD

Re: N.O.D on HOA fees? - Posted by Carmen_FL

Posted by Carmen_FL on February 12, 2001 at 17:51:13:

I had a similar situation on a (much!) smaller scale. The owner came to us a few days prior to the sale date. The sale had been set once before, for October, and she had talked them into giving her another chance, then proceeded to not make a single payment since then (can you believe the HOA and mortgage company expected her to make PAYMENTS over the HOLIDAYS!?!?! - that was her basic reasoning). Property worth $72,000, owner owed $60,000 to the bank, was 6 months behind, and owed the HOA $3,800 back payments (including legal fees). We spoke to the HOA 4 days prior to the sale date, and ALMOST got them to stop the foreclosure, promising they would get paid within 30 days. We had gotten info from the bank (1st mortgage) and they were supposedly willing to work out payments, so basically, if we had paid the HOA off we would have owned the house and been able to then do a PacTrust, L/O, rent, etc. or whatever we wanted with the property after, of course, working out something with the bank. Owner had already signed over a warranty deed to us (contingent on the sale NOT going through 4 days later).

The reason we did not pursue it is that 1) there was a tenant in the property already who didn’t look like they wanted to move; 2) this owner had gone back and forth with the bank/HOA so many times they were (obviously) sick of it, so there was a good chance that even if we had paid off the HOA, the bank would have demanded full payment of at least the past-due payments (about $7,000); and 3) the property was in an area that is hard to sell (although easy to rent) and I don’t want to be a landlord. If I’d had more than 3 days lead time, I probably would have flipped it to a Landlord - would have made a good rental property! As far as property taxes, I’m sure those were behind, too - but it takes 3 years to foreclose for back taxes here, so there would have been time to figure out what to do about those.

Re: N.O.D on HOA fees? - Posted by Dickseedo

Posted by Dickseedo on February 11, 2001 at 17:47:06:

I work for a mortgage company, i don’t know of a way you could get this property prior to fcl however you may want to make sure the mortgage company will allow you time to resell the property. This may not always be the case since title is being transferred at the sale they may require immediate payoff.

Re: N.O.D on HOA fees? - Posted by Charles Steed

Posted by Charles Steed on February 11, 2001 at 11:09:10:

Need more info. What is the value of the property and what is the loan bal. plus back paymnents and back taxes? Without these figures, suggestions are impossible.

Re: N.O.D on HOA fees? - Posted by JT from SD

Posted by JT from SD on February 11, 2001 at 18:07:23:

Property value = $700k+ assessed value as per county records.
I don’t know the loan balance off hand and I don’t think there are back payments(?), but the property’s back taxes are approximately $10.5K.
The HOA fees again are roughly $4.5k.
The original owners purchased the property almost 10 years ago. What suggestions might you offer now?

Thanks in advance Charles, and others.

JT from SD

Re: N.O.D on HOA fees? - Posted by Mike

Posted by Mike on February 11, 2001 at 13:35:39:

What does HOA stand for, I don’t know what it means.


Re: N.O.D on HOA fees? - Posted by Charles Steed

Posted by Charles Steed on February 11, 2001 at 23:44:51:

Well, the only way to solve a problem (there’s a big problem for this owner) is to completely understand it and offer solutions. If the owner is behind on HOA dues and taxes, chances are, he is behind on mortgage payments as well. Look closely at the NOD and see if there is any mention of a Deed Of Trust and what the unpaid balance is. Short of doing this you can contact the owner and tell him you learned of his problem thru public records. From here you can try to understand his problem and his needs.

You may find that in addition to a 1st mortgage there may be others. You can’t do anything without this info. If the county is foreclosing for taxes, there’s a high probability that all other liens will be wiped out.